Grand Canyon University (GCU), which is the nation's largest Christian university, has been fined a record amount by the U.S. Department of Education for allegedly misrepresenting the cost of certain doctoral programs to thousands of students.
On Tuesday, the department announced it is fining the school $37.7 million and accused it of deceiving more than 7,500 former and current students about the price of the programs. The Education Department also alleged 98% of students enrolled in the doctoral programs pay more than advertised.
An investigation by the Federal Student Aid Office (FSA) determined that the alleged dishonesty went back to 2017. The school told students that the cost of the doctoral programs in question was between $40,000 and $49,000. Internal university data showed that 78% paid $10,000 to $12,000 more, however.
"GCU lied about the cost of its doctoral programs to attract students to enroll," FSA Chief Operating Officer Richard Cordray said in a statement. "FSA takes its oversight responsibilities seriously. GCU's lies harmed students, broke their trust, and led to unexpectedly high levels of student debt. Today, we are holding GCU accountable for its actions, protecting students and taxpayers, and upholding the integrity of the federal student aid programs."
In responding to the FSA's allegations, Grand Canyon University said disclosures were provided that indicated the programs could cost more due to continuation classes. The department rejected the school's answer and said the information was "buried in dense documents and are much less prominent than the misrepresentations."
Grand Canyon has 20 days to appeal the fine and the department is also adding new conditions the school must meet in order to continue receiving federal funding.
It will be prohibited from making "substantial misrepresentations" about the cost of doctoral programs and must use the average cost paid by graduates if it discloses the cost to students.
The school must also report any other investigations or lawsuits and must inform current doctoral students how to file a complaint with the Education Department.
On Tuesday, GCU denied the administration's allegations and said that the issue of the disclaimer that the programs could cost more as a result of continuation classes has already been approved by federal courts in a recent case it settled.
"To be clear, GCU does not mislead or deceive students in any way," the school said in a statement obtained by The Hill. "In fact, the opposite is true given that GCU goes above and beyond what is legally required. While the Department requires that universities provide cost estimates only for the first year in college for first-year, first-time students, and only for undergraduate programs, GCU goes beyond these requirements by investing in proprietary technology that provides cost estimates for each year of the program of study and for all of its degree programs, including those at the doctoral level. GCU is looked at by its peers as an industry leader in transparency and its employees have been invited to speak at seven different higher education conferences on these matters."
The university claims that the department is retaliating for a lawsuit GCU has filed against the Biden administration to change its status to nonprofit.
Nicole Weatherholtz ✉
Nicole Weatherholtz, a Newsmax general assignment reporter covers news, politics, and culture. She is a National Newspaper Association award-winning journalist.
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